The International Energy Agency in its review of the Norwegian energy sector found that Oslo faces difficulties in meeting its objective of reducing greenhouse gas emissions by 30 percent of their 1990 levels by 2020 because the country's use of hydropower makes it already essentially carbon free.
The report finds that with Norway exporting most of its oil and natural gas, it is in a unique position to invest in new technology that advances energy efficiency and renewable energy.
Norway gets about 40 percent of its energy supply from hydropower. It exports around 90 percent of its total oil and gas production, though conventional hydrocarbons make up the bulk of the leftover demand.
IEA Executive Director Nobuo Tanaka said Norway is a model country for energy security though it could do more through wise investments in its oil and gas revenue.
"Norway's climate and energy policies stand out as a positive example for other countries," he said in a statement. "But Norway must now invest in developing new measures in order to continue moving forward toward its ultimate goal of becoming carbon-neutral by 2050."